French luxury and sporting group PPR is considering changing its name to Kering. The rebranding should be made official this month, according to sources in Paris. The choice is not really surprising, as of the old "Pinault-Printemps-La Redoute", Printemps was sold in 2006 and soon La Redoute will suffer the same fate.
Logical name change for a changed company
According to press agency Bloomberg the French company deposited the name at the US Patent & Trademark’s Office in November of last year. The name Kering (pronounce as “caring”) will be used for all their activities, going from fashion to leather.
The choice for luxury goods is logical: at the moment Gucci, Bottega, Veneta, Saint-Laurent and others bring in 64% of total sales (9.7 billion euro in 2012) and they generate 84% of recurring profit, while other branches, like Fnac and La Redoute, showed a loss of 276 million euro in 2012. At the moment PPR is worth 21.9 billion euro on the stock market. Its stock has soared this year, with a rise of 23% so far.
PPR without P and R
The name change should be the climax of a transformation, in which the group sold the chain Conforama (2010) and two home shopping subsidiaries (end of February 2013). This spring PPR will also bring entertainment chain Fnac to the stock exchange, while news about the sale of Redcats (La Redoute) is expected later this year.
Without all those retail activities the current name would not fit the bill anymore, but communications manager Louise Beveridge refused to comment about the rumour of a name change. For the French group it would be the fourth name change since 1988. Back then the company operated as Pinault, which later changed to Pinault-Printemps, then Pinault-Printemps-La Redoute and until further notice PPR.